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1. Company Snapshot

1.a. Company Description

CVD Equipment Corporation, together with its subsidiaries, designs, develops, manufactures, and sells process equipment and solutions that are used to develop and manufacture materials and coatings for research and industrial applications in the United States.It operates through three segments: CVD, SDC, and CVD Materials.The company offers chemical vapor deposition systems for use in the research, development, and manufacture of aerospace, medical components, semiconductors, LEDs, carbon nanotubes, nanowires, solar cells, and other industrial applications; and rapid thermal processing systems for use in implant activation, oxidation, silicide formation, and other processes.


It also provides annealing, diffusion, and low pressure chemical vapor deposition furnaces for use in diffusion, oxidation, implant anneal, solder reflow, solar cell manufacturing, and other processes; and gas and liquid control systems, such as gas cylinder storage cabinets, custom gas and chemical delivery systems, gas and liquid valve manifold boxes, and gas isolation boxes for semiconductor fabrication processes, solar cells, LEDs, carbon nanotubes, nanowires, and industrial applications.In addition, the company offers standard and custom fabricated quartz-ware used in its equipment and other customer tools, as well as repair and replacement services for existing quartz-ware.Further, it provides MesoPlasma direct write printing, a materials deposition process that provides instrumentation, fine feature patterns, and coatings onto conformal components; and Tantaline corrosion resistant coating for valves, fittings, fasteners, vessels, bellows, and custom designed items, as well as offers carbon composites and electronic materials.


The company sells its products primarily to aerospace/defense, medical, electronic component manufacturers, universities, and government and industrial laboratories.The company was incorporated in 1982 and is headquartered in Central Islip, New York.

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1.b. Last Insights on CVV

CVD Equipment Corporation's recent performance was negatively impacted by a slowdown in orders and concerns over tariffs. Despite returning to profitability and posting strong revenue growth of 69.0% year-over-year in Q1 2025, driven by contracts in the industrial market, the company's order backlog has slowed, casting a shadow on future growth. Additionally, the impact of tariffs on the company's operations remains a concern, potentially affecting its ability to maintain profitability.

1.c. Company Highlights

2. CVD Equipment's Transformation Plan Unfolds Amidst Challenging Market Conditions

CVD Equipment Corporation reported revenue of $7.4 million for the third quarter of 2025, a 9.6% decrease from the prior year quarter, but a 44.9% increase compared to the second quarter of this year. The company's gross margin stood at 32.7%, resulting in a gross profit of $2.4 million. The earnings per share (EPS) came in at $0.06 per diluted share, with net income of $384,000. The actual EPS was $0.21 relative to estimates at $0.11, indicating a positive surprise.

Publication Date: Nov -23

📋 Highlights
  • Revenue Decline YoY but Strong QoQ Growth: Q3 revenue fell 9.6% to $7.4M from $8.2M in Q3 2024 but surged 44.9% from $5.1M in Q2 2025.
  • Backlog Reduction: Backlog dropped to $8M from $13.2M at June 30, 2025, reflecting conversion of existing orders to revenue.
  • SDC Segment Drives Orders: Q3 orders of $2.2M were led by gas delivery systems demand in the SDC division.
  • Profitability Metrics: Gross margin held at 32.7% ($2.4M), net income reached $384K (6¢ per diluted share).
  • Transformation Strategy: Plan to reduce fixed costs by outsourcing fabrication, targeting operational agility without impacting SDC operations.

Operational Challenges and Strategic Response

The company faced external factors such as uncertainties related to tariffs, reduced US government funding for university research, and US government shutdowns, which impacted its order intake. Orders for the third quarter totaled $2.2 million, primarily driven by continued demand in the SDC segment for gas delivery systems. In response to these fluctuations, the board of directors approved a comprehensive transformation strategy aimed at reducing fixed operating costs and creating a more agile organization. As Emmanuel N. Lakios, President and Chief Executive Officer, highlighted the need to adapt to changing market conditions, the company is transitioning from vertically integrated fabrication to outsourced fabrication of certain components.

Valuation and Growth Prospects

Analysts estimate next year's revenue growth at 14.8%. With a current P/S Ratio of 0.76, the stock appears to be reasonably valued relative to its sales. Additionally, the EV/EBITDA ratio stands at 22.84, indicating that the company's enterprise value is approximately 22.8 times its EBITDA. This valuation metric suggests that the market is pricing in a certain level of growth and profitability. The P/E Ratio is -117.18, largely due to the company's current net income being relatively low compared to its market capitalization.

Financial Health and Future Outlook

The company's current cash position and projected operating cash flows are expected to be sufficient to meet working capital and capital expenditure needs for at least the next 12 months. The return to consistent profitability depends on new equipment orders, cost management, successful implementation of the transformation plan, and continued control over capital expenditures. With a ROE of -0.72% and ROIC of -2.51%, the company still faces challenges in generating returns for shareholders and investors.

3. NewsRoom

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CanAlaska Announces Results from Geophysical Program on West McArthur Project

Nov -25

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CVD Equipment Stock Declines Despite Y/Y Growth in Q3 Earnings

Nov -12

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CVD Equipment Corporation (CVV) Q3 2025 Earnings Call Transcript

Nov -11

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CVD Equipment Corporation Reports Third Quarter 2025 Financial Results

Nov -10

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CanAlaska Closes $15 Million Brokered Private Placement

Oct -30

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CVD Equipment Corporation Receives Order for Two PVT150™ Physical Vapor Transport Systems from Stony Brook University

Oct -14

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CVD Equipment Stock Declines Following Weak Q2 Earnings and Revenue

Aug -18

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CVD Equipment Corporation (CVV) Q2 2025 Earnings Call Transcript

Aug -13

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.56%)

6. Segments

Chemical Vapor Deposition

Expected Growth: 10.4%

Growing demand for high-purity materials and coatings in semiconductor, solar, and medical industries drives the CVD market growth, fueled by increasing adoption of CVD technology in emerging markets and advancements in nanotechnology.

Stainless Design Concepts

Expected Growth: 8.5%

Growing demand for custom stainless steel chamber and reactor designs in chemical vapor deposition (CVD) and other processes drives market growth, driven by increasing adoption in semiconductor, solar, and biomedical industries.

Materials

Expected Growth: 8.5%

Growing demand for semiconductor and electronics, increasing adoption of CVD and ALD technologies, and rising need for high-purity materials drive the market growth.

Eliminations

Expected Growth: 4.5%

Consolidated financial view drives growth, eliminating intercompany transactions and balances between subsidiaries, enhancing transparency and accuracy in financial reporting, fostering informed investment decisions.

7. Detailed Products

CVD/ALD Systems

CVD Equipment Corporation designs and manufactures a wide range of Chemical Vapor Deposition (CVD) and Atomic Layer Deposition (ALD) systems for research, development, and production applications.

Gas Handling Systems

The company offers gas handling systems, including gas cabinets, gas abatement systems, and gas delivery systems, designed to handle hazardous gases and chemicals.

Furnace Systems

CVD Equipment Corporation provides a range of furnace systems, including vacuum furnaces, atmosphere furnaces, and inert gas furnaces, for various thermal processing applications.

Nano and Advanced Materials

The company offers a range of nano and advanced materials, including nanoparticles, nanotubes, and graphene, for research and development applications.

Process Optimization and Control Systems

CVD Equipment Corporation provides process optimization and control systems, including software and hardware solutions, to monitor and control process parameters.

Custom Engineered Systems

The company offers custom engineered systems, including design, manufacturing, and integration of specialized equipment, for unique customer applications.

8. CVD Equipment Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for CVD Equipment Corporation is moderate, as there are limited alternatives to its products and services. However, the company's focus on innovation and R&D helps to mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low, as CVD Equipment Corporation operates in a niche market with limited competition, giving it pricing power and reducing the bargaining power of customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate, as CVD Equipment Corporation relies on a few key suppliers for critical components. However, the company's strong relationships with suppliers help to mitigate this risk.

Threat Of New Entrants

The threat of new entrants is low, as CVD Equipment Corporation operates in a highly specialized industry with significant barriers to entry, including high R&D costs and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high, as CVD Equipment Corporation operates in a competitive industry with several established players, leading to intense competition for market share and pricing pressure.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 1.31%
Debt Cost 6.61%
Equity Weight 98.69%
Equity Cost 10.81%
WACC 10.76%
Leverage 1.33%

11. Quality Control: CVD Equipment Corporation passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Broadwind

A-Score: 3.9/10

Value: 8.2

Growth: 5.0

Quality: 3.6

Yield: 0.0

Momentum: 5.0

Volatility: 1.7

1-Year Total Return ->

Stock-Card
Helios Technologies

A-Score: 3.8/10

Value: 3.0

Growth: 4.0

Quality: 5.8

Yield: 1.0

Momentum: 6.0

Volatility: 3.0

1-Year Total Return ->

Stock-Card
Babcock & Wilcox Enterprises

A-Score: 3.6/10

Value: 7.8

Growth: 3.2

Quality: 4.5

Yield: 0.0

Momentum: 6.0

Volatility: 0.0

1-Year Total Return ->

Stock-Card
CVD Equipment

A-Score: 3.6/10

Value: 6.6

Growth: 3.6

Quality: 5.0

Yield: 0.0

Momentum: 5.0

Volatility: 1.3

1-Year Total Return ->

Stock-Card
TPI Composites

A-Score: 3.0/10

Value: 10.0

Growth: 3.2

Quality: 4.8

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

Stock-Card
Laser Photonics

A-Score: 2.2/10

Value: 6.2

Growth: 2.2

Quality: 3.4

Yield: 0.0

Momentum: 1.5

Volatility: 0.0

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.32$

Current Price

3.32$

Potential

-0.00%

Expected Cash-Flows